FRIENDTIMES (06820) is expected to achieve a year-on-year increase in annual earnings of 8.9% - 11.7% to 11.5 billion - 11.8 billion yuan.

FRIENDTIMES (06820) announced that the group is expected to achieve revenue of approximately RMB 1.15 billion to RMB 1.18 billion for the year ending December 31, 2024, an increase of 8.9% to 11.7% year-on-year. The group is expected to incur a net loss of approximately RMB 50 million to RMB 45 million during the reporting period, a decrease of 63.8% to 67.4% year-on-year. The announcement stated that the main reasons for the year-on-year revenue growth during the period were: the launch of the domestic simplified Chinese version of "Floating Life Remembering Linglong" on January 2, 2024, and its subsequent launches in China, Hong Kong, Macao, Taiwan, and South Korea; the launch of the domestic simplified Chinese version of "Ink Sword Jianghu" on July 19, 2024; the revenue increase from online mini-games, with "Ling Yun Nuo" and "Du Lala's Promotion Diary" performing well and entering the top 50 of the WeChat mini-games bestseller list and the top 30 of the Douyin mini-games hot list respectively; and based on the performance of these products, revenue increased by 20.7% in the first half of 2024 and by 18.6% to 24.3% in the second half. The main reasons for the narrowed loss during the period were the launch of "Ink Sword Jianghu" and multiple mini-games, shorter break-even periods, quicker profitability, expense reduction during the reporting period, cost-cutting initiatives, and achieving positive profitability in the second half of 2024 through these measures. In terms of reserved games, the mobile game "Bao Chao Meng Chu" of Joyful Kitchen Party is highly anticipated by players due to its unique multiplayer cooperation mode, interesting and delicate food menu, rich and varied map settings, and distinctive character configuration. As of the date of this announcement, the game has received over 2 million reservations across all platforms and has garnered a massive following and over a million enthusiastic interactions on major social media platforms such as TapTap, Xiaohongshu, Bilibili, and Douyin. The game has successfully undergone two external tests recently, and is expected to be officially launched in public beta in the second quarter of 2025. In terms of technological breakthroughs, the group is actively advancing the deep integration of games and AI, focusing on the core goal of "technology empowering creation, intelligence reshaping experience," and striving to build a full-process AI application system covering research and development, distribution, and operation. The group has introduced various AI tools to optimize art, programming, translation, and audio modules, significantly improving efficiency. Additionally, the group is experimenting with integrating AI into game NPCs to achieve human-like interactions, and using AI's deep learning capabilities to train game level interactions to enhance player gaming experiences. Based on the operations of the above-mentioned products and reserved games, the group will continue to innovate, optimize resources, and the board of directors is confident in the group's long-term development and prospects.